Report reveals Telenor Group’s contribution to Asia’s digital future

Published byTelenor Group

Tuesday 13 December 2016

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Telenor Group today unveiled its first Global Impact Report quantifying the socioeconomic impact of the Group’s contributions in 13 markets across the world, including six in Asia - Bangladesh, India, Malaysia, Myanmar, Pakistan, and Thailand.

Developed by KPMG, the report is a detailed study of the socioeconomic effects created by Telenor as one of the largest mobile operators in Asia, and its instrumental role in the digitization of Asian economies and societies. Digital inclusion is part of Telenor’s commitment towards the United Nations’ Sustainable Development Goals, and specifically Goal 10: Reduced inequalities. The Global Impact Report sheds light on how Telenor’s operations contribute towards this goal.

The socio-economic effects captured in this study were categorized into four key areas:

Telenor’s contribution to macro-economic growth, including its contribution to GVA[1], its employment impact, its investment and its role in contributing to public finances

The ways in which Telenor’s services enable the wider economy, including the impacts on digital inclusion, financial inclusion, supporting entrepreneurship and innovation and supporting improved gender equality;

Telenor’s impacts in terms of sustainability in the supply chain; and

Telenor’s contribution in crisis situations.

Sigve Brekke, President and CEO of Telenor Group, said, “In Telenor we believe that connected societies are empowered societies. In a changing digital landscape, it is imperative that governments, businesses, and organisations work together to develop frameworks that stimulate growth and create shared value. This report aims to contribute to a constructive dialogue on how we can continue realizing the value and the opportunity of our digital future”.

Key findings from the report:

GROSS VALUE ADDED (GVA): $20.3 billion in GVA across its 13 markets. Of this, an estimated $10.7 billion was generated in Europe and $9.6 billion in Asia. The largest GVA contribution in Asia was in Thailand.

EMPLOYMENT: Telenor generated an estimated total of 1.2 million direct, indirect and induced jobs[2] in the global economy, of which 1.1 million were in Asia. For every 1 job that Telenor created directly, an additional 33 indirect and induced jobs were created within the wider economies of Telenor’s 13 markets of operation.

INVESTMENT: Telenor’s total investment was $3.2 billion, including $3.1 billion of capital expenditure. $1.8 billion of the capital expenditures were attributed to Asia.

FISCAL CONTRIBUTIONS: $11.7 billion comprising of contributions made directly, through the supply chain and induced economic activity, and through employees.

DIGITAL INCLUSION: $8.0 billion estimated net GDP contribution through greater digital access (2G and the shift to 3G and 4G) between 2014 and 2015. The Asian countries in which Telenor operates benefited most significantly, due to the number of subscribers, as well as due to the large increase in Telenor’s 3G and 4G penetration across these markets between 2011 and 2015.

FINANCIAL INCLUSION: 11.8 million subscribers accessed financial transactions via mobile. $27.6 billion in financial transactions using Telenor’s network, including mobile and over the counter transactions via Telenor’s own financial services, such as EasyPaisa in Pakistan.

GENDER: $3.1 billion of the estimated $8.0 billion net GDP contribution through greater digital access between 2014 and 2015 was attributed specifically to increased digital access for female subscribers. As an example of initiatives to increase mobile usage among females, Telenor India introduced Project Sampark – an initiative that trains women promoters within communities to create awareness around the benefits of digital and mobile access, particularly amongst females. 13,000 women were directly employed by Telenor in 2015 (36% of Telenor’s workforce).

SUPPLY CHAIN SUSTAINABILITY: 2.1 million employees benefitting from working for companies with high standards of labour rights and working conditions, following Telenor’s supply chain sustainability policy.

CONTRIBUTION IN CRISIS SITUATIONS: Telenor has played a key role during disaster scenarios, supporting consumers, governments, and wider society through connectivity and the assurance in knowing your loved ones are unharmed. Some of Telenor’s initiatives include:

Working with the International Federation of Red Crescent (IFRC) in Pakistan to develop a location-based early warning SMS system that allows mobile phone users in disaster hit areas and aid agencies to communicate in real time;

Working with the Ruam Duay Chuay Kan Foundation and radio station to create the m-Rescue application to provide real time news on traffic, road conditions and announcements on emergencies or accidents to people in Bangkok and the surrounding area as well as necessary information such as police station numbers, hospital contact details.

[1] Gross Value Added, or GVA, is the measure of the contribution to the economy of an individual producer, industry or sector, net of intermediate consumption. A nation’s Gross Domestic Product (GDP) is the sum of the GVA of all economic

[2] Direct jobs are those in Telenor Group itself; indirect jobs are those generated through Telenor’s supply chain as a result of its purchasing of goods and services; and induced jobs are those generated in the economy as a result of the additional economic activity arising from direct and indirect employees spending a proportion of their earnings.